Not too hot, not too cold; Union National Bank's (UNB) stock has been right in the middle of the UAE's big five listed banks since the start of the year. But are its latest earnings just right?
Strong corporate lending pushed the Abu Dhabi lender to stronger profits for the second quarter, but analysts said the latest results showed fewer growth prospects.
UNB reported profits for the quarter of Dh415.3 million, an increase of 23.1 per cent on the same quarter last year. Analysts polled by Bloomberg News had expected earnings of Dh396m.
Traders pushed the bank's stocks up 4.1 per cent to Dh3.51 a share yesterday, the largest intraday increase since June 1.
UNB's commercial lending division has been the real star performer, with profits of Dh439m during the first half of the year, almost twice the level recorded in the same period last year. The bank did not provide a quarterly comparison for its income from this segment.
With bearish sentiment abounding on world markets, it is little surprise to see some wariness from analysts. Despite the increased profits, doubts remain over the strength of the bank's loan book, according to a research note from Global Investment House.
"UNB's results were in line with our expectations, while performance was good overall. Net interest income jumped significantly," wrote Naveed Ahmed, a senior financial analyst at Global.
"We remain satisfied with the bank's performance for the quarter although continuation of similar provisions and weak loan growth could lead us to revise our estimates for the full year," he added.
Provisions increased 21.1 per cent to Dh151m, leaving little room for the bank to increase its lending. Net loans and advances were flat at Dh56.2 billion.
UNB may also need to bolster its provisions in the quarters ahead, which cover only half the value of its bad loans, according to a research note from AlembicHC.
The bank was among lenders to Al Jaber Group, the Abu Dhabi conglomerate that began restructuring talks with creditors last December.
Although the discussions are proceeding, the extent to which the bank must provide for lost income from the restructuring is still an unknown quantity.
ghunter@thenational.ae
Honeymoonish
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What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
FINAL RESULT
Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)
Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2
Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
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COMPANY%20PROFILE
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
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Director: Andrew Rossi
Starring: Anna Wintour, Karl Lagerfeld, John Paul Gaultier, Rihanna
Three stars
UAE currency: the story behind the money in your pockets
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Avatar%20(2009)
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Company%C2%A0profile
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F1 2020 calendar
March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
THE SPECS
Engine: 3.6-litre V6
Transmission: nine-speed automatic
Power: 310hp
Torque: 366Nm
Price: Dh200,000
The%20specs
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